Congressional Leader Endorses Peru Trade Pact
By James A. Morrissey, Washington Correspondent
After meeting with the president of
Peru, Rep. Charles Rangel, D-N.Y., chairman of the House Ways and Means Committee, said Congress
will give priority treatment to a free trade agreement (FTA) with Peru when it reconvenes in
September. As chairman of Ways and Means, Rangel pretty much controls the agenda for any
international trade legislation, so his endorsement means the FTA likely will be enacted this year.
The United States and Peru concluded negotiations on a FTA in 2006, but it had to be ratified by the legislatures of both countries. Peru approved it, but Rangel put a hold on it until he could be satisfied that Peru met the Democratic leadership’s requirement that FTAs include fair labor practices in the participating countries. Rangel traveled to Peru during the congressional August recess and met with President Alan Garcia and other Peruvian officials. He came away satisfied that with the protection of worker rights in Peru including the right for workers to organize and strike for better wages and benefits Rangel now says the FTA has his “total support.”
The National Council of Textile Organizations supports the Peruvian FTA because it contains a yarn forward rule of origin and does not include loopholes such as tariff preference levels (TPAs) that permit a given amount of products from non-participating countries to enjoy the duty-free benefits of the agreement. Importers of textiles and apparel do not like the yarn forward requirement or the exclusion of TPAs, but they are not expected to oppose this agreement.
In 2006, the United States imported $864.6 million worth of textiles and apparel, and so far this year, that has increased by about 5 percent.
August 21, 2007
The United States and Peru concluded negotiations on a FTA in 2006, but it had to be ratified by the legislatures of both countries. Peru approved it, but Rangel put a hold on it until he could be satisfied that Peru met the Democratic leadership’s requirement that FTAs include fair labor practices in the participating countries. Rangel traveled to Peru during the congressional August recess and met with President Alan Garcia and other Peruvian officials. He came away satisfied that with the protection of worker rights in Peru including the right for workers to organize and strike for better wages and benefits Rangel now says the FTA has his “total support.”
The National Council of Textile Organizations supports the Peruvian FTA because it contains a yarn forward rule of origin and does not include loopholes such as tariff preference levels (TPAs) that permit a given amount of products from non-participating countries to enjoy the duty-free benefits of the agreement. Importers of textiles and apparel do not like the yarn forward requirement or the exclusion of TPAs, but they are not expected to oppose this agreement.
In 2006, the United States imported $864.6 million worth of textiles and apparel, and so far this year, that has increased by about 5 percent.
August 21, 2007
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